Monday, April 13, 2020

With the economic slowdown (some may say collapse) entering its second month, few asset classes are coming out unscathed in the financial destruction. Yet as expected, the single commodity that is exploding upward is of course gold.

But with this in mind there is an even bigger scenario in play beyond simply the price of gold going up, and that is not only the disconnect between physical and paper gold, but also between the futures price and the spot price.

April 13 2020: Gold prices for paper and physical

Spot Price: $1716

Futures Price: $1761

Physical Price: $1864

As you can see, there is nearly a $50 difference ($45) between the current spot price and the June futures price, and a $100 (Futures) and $150 (Spot) premium between the physical and paper prices.

As the demand for gold continues to accelerate, the disconnect between the paper and physical markets will only increase. And it is now likely that the physical price will surpass its all-time high in dollar terms long before the end of the year.

For those who do not remember details of the Cold War between the U.S. and former Soviet Union, it was a combination of a military buildup under President Reagan coupled with a depressing of the price of oil that eventually led to the Communist regime's demise. Yet like a pendulum that swings to the opposite side when there is enough inertia, just 30 years later Russia has set themselves up to use the very same weapons that were used against them in order to bring harm or even destroy the financial systems of their adversaries.

This drop in oil price made it become much less profitable
to drill new oil wells. Also, the Soviet Union was an oil exporter, and at a
lower price, it earned less profit for the oil it exported. Given these
headwinds, oil production stopped rising, and by 1988, began to fall. Oil
production did not start rising again until the early 2000s, when oil prices
began rising again and a different political system was in power.

As oil production dropped in the 1988-1991 period, FSU oil
exports plummeted.
Given the combination of a low quantity of oil exported, and low sales price of
oil exports, the FSU found itself in financial difficulty where it could not afford
to pay for food imports, which it badly needed, and the country collapsed. - Oilprice.com

Fast forward 29 years.

In a move that few could see coming, Russia on Thursday voted against OPEC's desire to reduce production and appears very ready to see the price fall even lower than Friday's market close of $42.

OPEC needs this cut to remain relevant. The cartel is dying.
It’s been dying for years, kept on life support by Russia’s willingness to
trade favors to achieve other geostrategic goals.

But finally Russia said No. And they didn’t equivocate. They
told everyone they are prepared for lower oil prices. - Gold, Goats, and Guns

Yet this move did not come in a vacuum, as Russia's announcement comes when both the U.S. and Europe are at their most vulnerable... as in having to deal with crashing bond and equity markets, an escalating war within NATO between members Greece and Turkey, and a global pandemic labeled as the Coronavirus.

Invariably the foundation for this gambit opened itself up since OPEC was already on the way out, as seen just a few years ago when the Middle Eastern cartel willingly accepted Russian aid and guidance in what would become known as OPEC+1. But thanks to a number of chaotic events such as the continuing conflicts in Iraq and Syria, economic sanctions against Iran, and Qatar leaving OPEC completely last year, what was once a coalition dominated by Saudi Arabia and Iran had almost overnight shifted to one being directed from offices located in Moscow.

In addition to all of this, we cannot forget the incredible growth of America's shale industry which by 2019 had overtaken even Russia in producing the most barrels of oil in a given day. However in doing so, the U.S. leveraged the industry way too much as bank subsidization coupled with higher production costs put America too close to the edge if prices declined too much.

And with all of these black swans and white albatrosses circling the globe, a perfect storm emerged for Moscow to use now as the time in which they could exact revenge on Washington by using the very weapon (oil prices) that was a catalyst for their own collapse in 1991 and flip it towards bringing down the already tenuous global financial system.

When dealing with a more-powerful enemy you have to target
where they are most vulnerable to inflict the most damage.

For the West that place is in the financial markets.

Remember, the first basic fact of economics. Prices
are set at the margin. The only price that matters is the last one
recorded.

That price sets the cost for the next unit of that good, in
this case a barrel of oil, up for sale.

In a world of cartelized markets the world over, where
prices are set by external actors, it is easy to forget that in the real
economy (regardless of your political persuasion) the world is an auction and
everything is up for bid.
High bid wins.

So, the most important geostrategic question is, “Who
produces the marginal barrel of oil?”

For more than three years now, President Trump has supported
his policy of Energy Dominance in a Quixotic quest for the U.S. to become that
supplier. Trillions of dollars have been spent on building up domestic
production to their current, unsustainable levels.

This policy pre-dates Trump, certainly, but he has been its
most ardent pursuer of it, sanctioning and embargoing everyone he can to keep
them off the bid.
What he could never do, however, was push Russia off that
bid.

The reason U.S. production rates are unsustainable is
because their costs are higher per barrel than the marginal price especially
when all other prices are deflating. Simple, straightforward
economics.

All of this adds up to Russia holding the whip hand over the
global market for oil.
The ability to say, “No.”

And they will have it for years to come as U.S. production
implodes. Because they can and do produce the marginal barrel of oil.

That is why oil prices plunged as much as 10% into today’s
close on the news they would not cut production.

There is a cascade lurking beneath this market. There is a
lot of bank and pension fund exposure in the U.S. to what is now soon-to-be
non-performing fracking debt.
Liquidations will begin in earnest later this year.

And like clockwork, it appears that repercussions have already begun to emerge just three days after Moscow laid down the law over production cuts.

Veteran oil trader Mark Fisher tells CNBC's Scott Wapner that oil is indicated to open below $32 per barrel - nearly $10 less than where it closed on Friday, and about $15 per barrel below where it closed on Thursday.

Diabolically as well, one of the primary reasons President Obama wanted his administration to seize control over the student loan program was to be able to provide unlimited money to millennials at a time when the nation was deep in recession following the 2008 financial crash. Because by providing an outlet for young Americans to 'hide out' on campuses instead of potentially protesting in the streets because there were few available jobs, Obama was able to easily make it through any potential crisis that might have taken place while the central bank was infusing the financial system with tens of trillions of dollars in QE.

Unfortunately, the natural laws of artificially expanding the money supply this way (via the Fed and the Federal budget) had some very real repercussions in two areas of the economy. First, because the student loan program suddenly expanded in scope to individuals to be able to borrow much more than in the past, universities seized upon this government underwriting by escalating tuition's and fees to astronomical levels. Thus where a decade prior a student may have left college with less than $30,000 in debt, that number skyrocketed to well over $100,000.

Secondly, the advent of the Affordable Care Act (Obamacare) precipitated the same thing in the medical industry as costs also skyrocketed, and premiums for Obamacare insurance took nearly 20% of many Americans paychecks.

However at least for those Americans who's debt was tied to overwhelming medical costs, there was always the option of bankruptcy to be able to get out from under the burden of their massive obligations. But for those who's debts were tied to student loans, there was little recourse as Congress had skewed the laws against them to be able to use bankruptcy as a viable safety net.

Until now?

But on January 7, 2020, a New York judge ruled that the $221,385.49 in student loan debt owed
by Rosenberg as of November 2019 was dischargeable under chapter 7 bankruptcy.

“I have a chance now to have a life,” the 46-year-old
Rosenberg told Yahoo Finance in an interview.

A bankruptcy expert told Yahoo Finance that Rosenberg’s case
is a watershed in that it dispels the notion that student loans were not
dischargeable in bankruptcy. – Yahoo Finance

For what appears to be a first in the more than 40 years of government intrusion over bankruptcy laws, a judge has ruled against that the legislative branch by putting a crack into a system that has 'enslaved' a generation of Americans under the weight of nearly unpayable debts.

Sadly for most millennials, knowledge of how their student loan debts have hampered their abilities to experience the American Dream has been understood for more than a decade by the very same government who helped create their situations. And while some Democratic Presidential candidates like Bernie Sanders and Elizabeth Warren pander to millennials by promising that the government will erase their debts if they get voted into office, the reality is that most political promises never manifest the way they think, and instead their best option may be in this small innocuous court ruling early here in 2020.

Sunday, November 10, 2019

Veteran's Day seems to be more than any other holiday outside of Thanksgiving and Christmas the one where Americans rush to the front of the line to give. And this is no more apparent in how many businesses offer discounts or even free stuff on Nov. 11.

Free or discounted meals:

7-Eleven: Veterans with a Veterans
Advantage account can link their account to the convenience store chain's
7Rewards loyalty program to get special offers including a free cup of coffee
for Veterans Day. Learn more at www.7-eleven.com.

Carrabba’s
Italian Grill: Free order of calamari with any purchase to
all veterans, active military, police officers and firefighters with a valid ID
Friday through Monday. The chain also has an ongoing 10% discount for
active and retired service members.

Cotton
Patch Cafe: Free Chicken Fried Steak or Chicken Fried Chicken
Monday. Also, vets and active military will get an American flag pin and the
restaurant is introducing an ongoing 10% military discount.

Outback
Steakhouse: Through Monday, Outback has a 20% heroes discount for
military members, police officers, firefighters and first
responders. There’s also a 10% everyday Heroes Discount for
servicemen and women, police officers and firefighters.

Panera
Bread Florida: Free You Pick Two Monday at locations owned and
operated by Covelli Family Limited Partnership.

Papa
Murphy’s: According to the company’s website,
a “limited number of our stores offer various discounts, including senior and
military discounts. Please inquire at your local store as this discount is not offered
or required at all locations.”

Ponderosa
and Bonanza Steakhouse: Offers vary. Some locations will promote
either a free buffet or 50% off buffet to veterans Monday. Veterans also will
get a coupon for 20% off their meal on their next visit.

Car
wash: Veterans and active military can get a free car wash at
participating locations nationwide Sunday. Find locations at www.graceforvets.org.

Goodyear Auto Service: Free "Checks for
Vets" through Nov. 16 but appointments must be scheduled by Monday. Car
care checks include free inspections on alignment, battery, brakes, shocks,
struts, tires and wiper blades. Vets also get free tire installation with tire
purchase. Learn more at www.goodyearautoservice.com/military.

Great
Clips: Veterans and active duty get a free haircut
on Monday or pick up a free haircut card to use through Dec. 31. Also
non-veterans who get a haircut Monday get a free haircut card to give to a
veteran. The cards can be redeemed Nov. 12 to Dec. 31.

Just
Tires: Free "Checks for Vets" through Nov. 16 but
appointments must be scheduled by Monday. Car care checks include free
inspections on alignment, battery, brakes, shocks, struts, tires and wiper
blades. Vets also get free tire installation with tire purchase. Learn
more at www.justtires.com/military.

Monster
Mini Golf: Free golf for veterans Monday. Many locations also are
expanding the offer to include active military. Proof of service is required.
Ask at the register for the discount to be applied at time of purchase.

Planet Fitness: Free workouts through Nov. 15 for
active military and veterans who can bring a friend at no charge. Also relax after
with a free HydroMassage and chair massages.

Friar
Tux: 30% discount on tuxedo and suits sale and rental
orders for veterans and current military who order in person Monday.
Discount applies to suits and tuxedos for entire wedding party including groom,
groomsmen and all other event officiants. The Veterans Day discount is instead
of the ongoing 5% military discount.

Kmart: 10%
in-store discount for veterans, first responders and teachers through Monday.

Kohl's: 30%
off to active and former military personnel, veterans and their families
through Monday, double the regular Military Monday discount.

Leslie’s
Pool Supplies: Through Monday, the veterans discount is 10%
instead of the usual 5% on all in-store purchases.

Spartan Race: Free registration to Spartan events
across the country for active duty military, law enforcement, first
responders, veterans and retirees.

Staples: 25%
off discount Sunday through Nov. 16 for active-duty personnel, reservists,
retired or disabled veterans and their immediate families.

Target: Through Monday, all military personnel,
veterans and their families get a 10% discount on one purchase in
store and online. To get verified and learn more, go to Target.com/military.

TCC Verizon: Between Saturday and Monday, around
550 TCC stores nationwide will host a Veterans Appreciation Event to honor
veterans for their service. Each veteran who attends the event will receive a
TCC water bottle and there will be other giveaways. For a list of participating
TCC stores, go to www.tccrocks.com/locations.

Walgreens: Through Monday, vets, active duty and
their families get 20% off regular price items with a free store loyalty card
and valid military ID or proof of service.

Academy Sports & Outdoor
Oct. 27 – Nov. 11, 2019 get 10% off at Academy. All active duty and reserve
military members, retired or discharged veterans (discharged includes
honorable, under honorable condition, or general, dishonorably discharged will
be excluded), and immediate family members (spouse and/or dependent children up
to 18 years old) are eligible.

Alpine Rings
They are doubling their year-round veteran discount to 30%. Orders must be
placed between November 7-12 and proof of service must be verified.

Amtrak
20% off travel to veteran and active military service members between Aug. 25
and Jan.31, 2021.

Army & Air
Force Exchange Service
Get Veterans Day deals on many items, including TVs, laptops, washer-dryers,
jewelry and more, from Nov. 8 to Nov. 14. Use your Military Star card to
get discounts on Exchange fuels, 15% off at restaurants and $10 off mall vendor
purchases of $25 or more.

Army Corps of Engineers
They are waiving day use fees at 2,800 USACE recreation areas nationwide in
observance on Veterans Day, November 11 and 12. The U.S. Army
Corps of Engineers is waiving all day use fees at more than 2,800 recreation
areas nationwide this Veterans Day. This waiver is available to all veterans,
active and reserve component service members, and their families. Only verbal
confirmation of service is required.

Big Al’s
Free bowling to all Veterans and Active Military Monday, November 11th.

Brenden Theatres
On November 11th, veterans get into one movie for free. Must present a valid
military ID or DD Form 214.

Brides Across America Free
Wedding Gown Events
During the month of November Brides Across America is partnering with bridal
salons across the nation to giveaway wedding dresses to qualified military
brides. All military brides must pre-register online.

Buckle
Free shipping November 4-18 for Veterans Day. Active Duty and veteran shoppers
can receive 10% off their purchase at Buckle.com after
completing verification through SheerID.

Cabela’s Hometown Heroes
There is a 5% discount is for Military Personnel (active and retired
military, active reservists and VA recipients) plus Law-Enforcement,
Firefighters and Emergency Medical Service personnel (EMS) with proof of
service. Cabela’s is hosting Hometown Heroes events. Check individual
store events for Veterans Day activities and possible additional discounts.

Caesars Hotels
Get up to 40% off Caeser’s hotels across the US from November 7 – 11.

Choice Hotels and Operation Homefront
Between Nov. 8 and Nov. 11 travelers will receive 15% off stays through
December 30, and a portion of the proceeds from reservations made will go to
Operation Homefront to help serve America’s military families.

Divi Resorts
Divi Resorts is offering military families up to 50% off all resorts on Aruba,
Bonaire, Barbados and St. Maarten. This limited-time offer runs from now until
November 27, 2019 for travel through December 20, 2019.

Dollar General 11% Discount
11% off total purchase in-store or online on Veterans Day for veterans and
active military and their family members. Valid for participating locations and
on qualifying purchases.

Duane Reade
Offering a 20% discount to all Veterans, Active duty military Nov. 8 through
Veterans Day on Monday, Nov. 11. Must present a Balance® Rewards card and valid
Military ID or proof of service to receive discount on eligible items.

Enterprise Car Sales
November 1 – 30, 2019, all active U.S. military, veterans and dependents, will
have included in their used vehicle purchase from Enterprise Car Sales, a
Firestone prepaid maintenance package valued at $300.

Eyemart Express
Thru November 16th, all individuals who have served our country and their
families will receive 20 percent off their eyewear purchase when they visit an
Eyemart Express, Vision4Less, Visionmart Express, or Eyewear Express store.

Food Lion
Veterans, active military members and their families receive a 10% MVP discount
on Monday, November 11th, 2019.

Free Car Wash
All veterans and service personnel get a free car wash at participating
locations. Every year Grace For Vets, a non-profit organization, unites the car
wash industry in 4 countries (U.S., Canada, New Zealand, Australia) with this
program.

Free Hair Cut
While too many to list, many local hair clip and barber shops offer free hair
cuts on Veterans Day to Veterans and active duty armed forces members. Call
stores in your local area to confirm.

Free Oil Change
Oil changes are free to Veterans and active duty armed forces members at many
participating local oil change centers including participating name brand oil
service centers. Call stores in your local area to confirm. Many are offering
the free oil change for several days around Veterans Day.

Friar Tux
Veterans and active military who order their suit or tuxedo in person at any of
the 31 Friar Tux stores in Southern California and Las Vegas on Veterans Day,
Monday, Nov. 11, will receive a 30% discount on their entire order. The deal is
an extension of Friar Tux’s 5% everyday discount

Jefferson Lines
Book your ticket between November 1-11 at your local depot, and receive a free
one-way or round-trip travel with proof of military ID/personal ID. Free
tickets are available for travel departing on Nov. 11th through Nov. 27th for
both one-way and round-trip tickets.

Lowe’s Home Improvement
Lowe’s offers 10% off to all veterans and active duty service members every day
by signing up for a MyLowes card (not a credit card).

Main Event Bowling
On Monday, November 11th all active-duty and retired U.S. military personnel
can enjoy a free entrée from a special menu. Plus, all military personnel will
receive 30 minutes of game play.

MetroRock Climbing Gym –
Free climbing and gear rentals for all veterans, active military, and their
families on 11/11.

Movie Scoop
On 11/11/19, enjoy a free medium popcorn and medium beverage at all #MovieScoop
Cinemas.

Pandora
Enjoy 25% off your total PANDORA purchase with military I.D on 11/11/19. Must
be active or retired military or spouse/domestic partner/dependent ID. Valid at
participating locations, not available online.

Planet Fitness
November 8-15, 2019 all veterans and active military personnel are invited to
work out. Bring a workout buddy at no additional charge, and relax after your
workout with free HydroMassage and chair massages. Plus, honor the Veterans in
your life with 20% off in at Harry & David or Simply
Chocolates through 11/11/19. Use promo code PLANET20.

Sport Clips Free Haircut
During the annual Sport Clips Haircuts Help A Hero campaign from Oct. 14 –
Veterans Day, November 11, 2019, participating locations offer free haircuts to
service members and veterans with valid military identification. Many
participating locations also offer veterans preferential pricing on haircuts
throughout the year.

Sprint
On Nov. 8, Sprint will launch Sprint Perks to members of the military.
Veterans, active duty and reserves of the U.S. Armed Forces, are eligible for
the added value of Sprint Perks. Visit a Sprint store Nov. 8 through Nov. 14
and enter to win a free tablet with a year of service included. There will be
100 lucky winners nationwide!

Super 8
This Veterans Day, Super 8 will increase the discount it provides to members of
the military and their families to 20 percent off its best available rate for
stays through Dec. 6, 2019.

Target
A Veterans Day military discount is available at Target stores and Target.com
from Nov. 3-11, 2019. all military personnel, veterans and their families in
stores and online. are eligible to receive a 10 percent discount. Guests can
visit target.com/military for more information
and to get verified for the offer.

TOPS Market
This Veterans Day, Monday, November 11, TOPS will honor an 11% discount off of
a total order to all veterans and active military personnel who shop at any of
their locations.

Tuft & Needle
Veterans get $175 off Mint and Hybrid Mattresses through 11/11/19.

Under Armour 20% off
Get 20% off site wide & in all Under Armour stores. Offer valid for
Military, Veterans & First Responders Click for Details. Normally
10% off year round. The 20% off is valid from from 11/4 to 11/11.

VCS PatriotStore
VCS operates over 200 PatriotStores in Veterans Administration (VA) Medical
Centers nationwide that offer discounts on merchandise and café items from Oct
24 – Nov 11, 2019. Not all promotions will be available at all locations.

Active Military Members, Reservists, Cadets, Gold Star Families and Veterans
with valid ID can receive a 1-year membership of Amazon Prime, a $119 value,
from Verizon with qualifying plan and new phone purchase

Vineyard Vines
On 11/11/19 Vineyard Vines will increase their everyday military discount from
15% to 30%.

Vons
Veterans save 10% off groceries with a valid Military ID November 9 – 11.

Walgreens
Offering a 20% discount to all Veterans, Active duty military Nov. 8 through
Veterans Day on Monday, Nov. 11. Must present a Balance® Rewards card and valid
Military ID or proof of service to receive discount on eligible items.

Westgate Resorts
Westgate Resorts is giving away free vacations on Veterans Day. The first 1,500
eligible service members who complete the online military appreciation form
will receive a complimentary vacation to either Orlando, Florida, or Las Vegas,
Nevada.

Wyndham Hotels & Resorts
Eligible military members can enjoy 15% or more off their Best Available Rate
at participating Wyndham Rewards Hotels across the U.S. and Canada. Plus,
Wyndham Rewards members receive 500 bonus points. Book by December 5 and
complete your stay by December 6, 2019. Plus, confirm your military status and
you’ll be automatically upgraded to a Wyndham Rewards GOLD level membership.
After completing your first qualifying stay, you’ll receive 1,000 bonus points.

Friday, November 1, 2019

Perhaps it is just coincidence, but ever since the Fed began initiating its Repo Facility back in September, a slew of bank failures have taken place over the past couple of months. And while these three banks aren't particularly large in scope, today's newest bank failure on Nov. 1 marks the fourth financial institution to shutter its doors in a short period of time after seeing no failures in over 18 months.

If you were banking at City National Bank of New Jersey located in the city of Newark, you are now banking at Industrial Bank.

During, and again over the following four years after the Financial Crisis, an average of 40 banks per year closed their doors. And while there have only been four bank failures since December of 2017, the question remains on whether this is simply an anomaly, or if the liquidity problems in the Credit Markets will lead once again to a run of future bank failures.

Monday, October 28, 2019

When President Barack Obama decided to use economic warfare against Russia as cover for their regime change war in Ukraine, the outcome was like a checkers novice playing against a chess grandmaster. And this is because in the five years since the U.S. began cutting off Russia from the SWIFT system, the Eurasian power has created its own new standard that is now fully online.

And in a report announced on October 28, Russia's SWIFT alternative (SPFS) is ready to connect with both India and China and create a system that will contain over 40% of the world's population in trade that functions outside the dollar.

Members of the BRICS trade bloc Russia, India, and China
have decided to connect their financial messaging systems to bypass the SWIFT
international money transfer network.

Russia’s financial messaging system SPFS will be linked with
the Chinese cross-border interbank payment system CIPS. While India does not
have a domestic financial messaging system yet, it plans to combine the Central
Bank of Russia’s platform with a domestic service that is in development.

The new system is expected to work as a “gateway” model when
messages on payments are transcoded in accordance with a certain financial
system. - RT

If you want to see a microcosm of what happens when liberals seek to tax the hell out of the rich, all you have to do is look at the six month tragedy that is the state of Connecticut. And this is because in just a short period of time after deciding to increase taxes on millionaires and hedge funds, the capital city went completely insolvent after the very businesses they were targeting up and left town.

Gov. Dannel Malloy is waging a bare-knuckle budget battle
with state legislators in Hartford, even as that capital city teeters on the
brink of bankruptcy. Both sides are trying to staunch the projected $2.7
billion deficit for the new fiscal year beginning July 1 without raising
personal income taxes, already among the highest in the nation.

And while still smarting after General Electric moved
its corporate headquarters from Stamford to Boston last year, the Nutmeg State
suffered another body slam in early June when insurance behemoth Aetna announced
it’s leaving its home office in Hartford after 164 years for new HQ digs in
Manhattan (although about 5,000 employees will remain in Connecticut).

Connecticut is hardly alone among states that have seen
corporate residents flee, but marquee names like GE and Aetna make for bad PR,
not to mention a deleterious decline in tax revenues. Besides those two exits,
several of the state’s high-earning hedge funds have relocated to Florida, causing a steep drop in receipts. - CNBC

Yet sleepy Connecticut is by far not the biggest state to see an outflow of companies once their taxation policies began to focus on the rich. Illinois, New York, and especially California have seen massive migrations to tax friendly states, and it looks like even Wall Street is getting into the act in the coming months.

A new report via Bloomberg details
how JPMorgan Chase & Co. is preparing for the next economic downturn by
weighing the option to relocate its Manhattan headquarters to lower-cost
financial hubs such as ones in Plano, Texas; Columbus, Ohio; and Wilmington,
Delaware.

JPM spokesman Joe Evangelisti told Bloomberg the bank's new
headquarters (likely to be in Texas), will house twice the number of employees
than its Manhattan office.Sources told Bloomberg that hundreds of credit-risk
employees have already transferred to Texas. Other sources have said Manhattan
will no longer be the location for the bank's compliance.

Bloomberg noted that other large financial institutions had
been exiting NYC for lower-cost commercial hubs across the country.

The demographical shifts should be a warning sign to Democrats and Liberals who think they can continue in their 'policy of envy' by promising to tax the rich into oblivion. But as we saw a few years ago in France when President Hollande instituted his own tax the rich scheme, wealthy companies and individuals will simply pack up and leave town, and make matters far worse for already insolvent states and countries.

When former President Lyndon Bains Johnson in 1964 issued his proclamation that the government was ready to go full bore in a 'War on Poverty', very few realized it would be the beginning of the end for the American system, economy, and culture. And sadly this transition would only take about 55 years as on Oct. 24 we have finally reached the point where the government spends more on welfare than it does receiving tax revenues.

The takers in America have now outdone the producers.

Without
government largesse, many individuals would literally be living on the street.
The chart above shows all the government “welfare” programs
and current levels to date. While unemployment insurance has hit record lows
following the financial crisis, social security, medicaid, veterans’ benefits,
and other social benefits have continued to rise and have surged sharply over
the last few months.

With 1/5
of incomes dependent on government transfers, it is not surprising that the economy continues
to struggle as recycled tax dollars used for consumption purposes have
virtually no impact on the overall economy.

In fact, in
the ongoing saga of the demise of the American economy U.S. households are
now getting more in cash handouts from the government than they are
paying in taxes for the first time since the Great Depression. This,
of course, at a time when the current administration is more enthralled with
trying to find some universe where cutting taxes actually increases tax revenues as a percent of
GDP rather than actually cutting spending.

In 2018,
households received $2.2 trillion in some form of government transfer payments,
which was more than the $1.7 trillion paid in personal income taxes. – Real
Investment Advice

Make no mistake, Democrats and the Deep State bureaucracy have sought to negate the results of the 2016 election even before Donald Trump was inaugurated into office. And when the Russiagate Hoax failed following the release of the Mueller Report, House Democrats began feverishly looking for their next Quixotic windmill to use to try to impeach the President.

But perhaps what many like Pelosi, Schiff, and Biden did not plan for was the ouster of their Ukrainian puppet Petro Poroshenko, who had helped facilitate schemes that enriched these politicians with fraudulent jobs for their children, and cash contributions for their coffers.

Joe Biden:

Among the documents, as Fox News reported Wednesday, are notes from an interview
Trump attorney Giuliani conducted with fired Ukrainian prosecutor
Viktor Shokin earlier this year, in which he claimed he was
told by former U.S. Ambassador to Ukraine Geoffrey R. Pyatt to back off an
investigation involving that firm, Burisma Holdings, and its founder.
According to interview notes, Shokin claimed Pyatt -- currently the ambassador
to Greece -- told him to handle that investigation “with white gloves.”

In that interview, Shokin also claimed that former Ukrainian
President Petro Poroshenko told him he should not investigate Burisma, “as it
was not in the interest of Joe and/or Hunter Biden.” Shokin claimed Poroshenko
told him that due to his investigation, Joe Biden held “up to one billion
dollars in U.S. aid to Ukraine.” Poroshenko eventually removed Shokin. – Fox
News

Adan Schiff:

In 2013, Pasternak
hosted a fundraiser in Washington for Schiff, who later came to embrace a
strong stance in support of the United States sending military aid to Ukraine
during its conflict with Russia.

“Before this time, Schiff rarely, if ever, mentioned
Ukraine,” Fox News’ Laura Ingraham said on her show Thursday night, after
detailing Schiff’s
connection to Pasternak. “But after the fundraiser, he used multiple
television appearances to basically demand that we send money and arms to
them.” – Fox
News

Speaker Nancy Pelosi:

House Speaker Nancy Pelosi’s son Paul Pelosi Jr. visited
Ukraine in 2017 to meet with government officials in connection to a business
initiative. Now, unearthed records reveal that Paul Pelosi Jr. was an executive
of a gas industry company that did business in Ukraine – and his mother Nancy
Pelosi was featured in one of the company’s promotional videos. – National
File

Then of course there is Paul Manafort, who following his conviction for acting as a foreign agent to and with Ukrainian oligarchs was outed as a Democratic operative working within the Trump campaign.

Ironically it appears that President Trump is the only politician actually following the law when it comes to Ukraine and his seeking their assistance in investigating corruption of American agents. And that is because the American people do not know of, and the Democrats have conveniently forgotten, that in 1999 President Bill Clinton established an agreement between the US and Ukraine to aid one another in any and all criminal investigations, meaning everything Trump did in his phone calls and discussions was completely and utterly above board.